This watchdog blog, by journalist Norman Oder, offers analysis, commentary, and reportage about the $4.9 billion project to build the Barclays Center arena and 16 high-rise buildings at a crucial site in Brooklyn. Dubbed Atlantic Yards by developer Forest City Ratner in 2003, it was rebranded Pacific Park in 2014 after the Chinese government-owned Greenland Group bought a 70% stake in 15 towers. New York State still calls it Atlantic Yards. Contact: AtlanticYardsReport[at]hotmail.com

Friday, August 19, 2016

As I wrote 4/5/15, though Atlantic Yards had long been described as a $4.9 billion project, rounded up to $5 billion (after starting in 2003 at $2.5 billion), a 9/16/14 press release issued by Greenland Holding Group, the new project's new 70% majority owner (excluding the arena and B2 modular tower) described a total project investment of $6.6 billion.

It's unclear whether that number included the arena, which cost about $1 billion, including infrastructure. But it's safe to say it's all a moving target, especially since costs surely will escalate during the buildout, which will last until (at least) 2025.

The Landing at Oyster Point follows Greenland USA's $1B+ investment in Los Angeles' Metropolis and $6B+ investment in New York's Pacific Park Brooklyn. Both projects exemplify Greenland USA's expertise and vision for developing transformative properties in gateway cities that also support the local economy and foster the growth of the surrounding communities.

This syntax implies that Greenland would invest $6 billion-plus, which, if taken literally, means Forest City Enterprises would contribute another $2.5 billion-plus. Highly unlikely. And, of course, neither wants to use their own money, and are trying to sell three building sites.

But it's likely safe to say the entire project's price tag will ultimately exceed $6 billion--easily, if the arena's included, and likely, even without.